An illegal market in which the price exceeds a legally imposed price ceiling is called a
A) shortage market.
B) surplus market.
C) black market.
D) fair market.
E) subsidized market.

Question

Quizplus · Accepted Answer

A black market is an illegal market where prices are set above the legally imposed price ceiling. This can occur when the government imposes a maximum price but demand exceeds supply and sellers are unable to meet the demand at the legally set price, so they then sell their goods or services at a higher price in a black market.

An Illegal Market in Which the Price Exceeds a Legally